Both bulls and bears got talking points from Under Armour, says Deutsche Bank. In a research note titled "Glass Half Empty vs. Half Full," Deutsche Bank analyst Paul Trussell says Under Armour's investor day provided both bears and bulls with talking points. From a pessimistic perspective, the stock had clearly priced in more aggressive targets, especially for fiscal 2019, and valuation looks "fair to still expensive punching in the long-term outlook," Trussell writes. On the other hand, though, the analyst points that Under Armour raised its Q4 forecast, provided fiscal 2019 guidance that "looks quite achievable given modest expectations for margin recapture and no acceleration in top-line sequentially." He lowered his price target for the shares to $19 from $20 and keeps a Hold rating on the name.

Under Armour guidance conservative, but investors cautious, says Morgan Stanley. Morgan Stanley analyst Lauren Cassel called Under Armour's 2019 guidance "appropriately conservative," but she believes the company needs to show investors next year's numbers are achievable before they put faith in the company's 5-year targets, which "met elevated expectations." Following the company's investor day, Cassel raised her out-year estimates by about 30%, on average, but keeps a $21 price target and Equal Weight rating on Under Armour, which she still considers a "show me" story.

Under Armour five-year outlook back-end loaded, says Jefferies. Jefferies analyst Randal Konik says Under Armour yesterday gave a "thorough deep dive" that showed a path to better North American growth, "massive" international potential and "substantially" better product. That said, the company's five-year outlook is back-end loaded, which means the turnaround will take time, Konik tells investors in research note following the company's analyst day. Konik, while confident that Under Armour's improvements will occur and management's guidance is conservative, lowered his price target for the shares to $28 from $30. He keeps a Buy rating on the name.

Under Armour five-year plan 'not a stretch,' says Piper Jaffray. Piper Jaffray analyst Erinn Murphy remains positive on Under Armour shares following yesterday's investor day. The analyst sees the company's five-year plan as "thoughtful but not a stretch." The new product previewed will hit the market starting in Q2 and footwear is a key multi-year growth driver, Murphy tells investors in a research note. She keeps an Overweight rating on Under Armour with a $32 price target.

At an investor meeting held today at its global headquarters, Under Armour said revenue is expected to return to a low double-digit growth rate by 2023, inclusive of a mid to high single-digit five-year compounded annual growth rate, driven primarily by the company's International and Direct-to-Consumer businesses. Gross margin is expected to increase approximately 275 to 300 basis points reaching at least 48.0% in 2023. Annual operating margin is expected to reach a low double-digit percentage rate by 2023. Earnings per share is expected to grow at a five-year CAGR of approximately 40%. Annual cash flow from operations, by 2023, is targeted at approximately $700M, with a cumulative $2.5B in cash flow to be generated between 2019 and 2023. Return on invested capital is expected to reach 20% by 2023.

At an investor meeting held today at its global headquarters, Under Armour provided the following updates to its previous annual outlook, which was issued October 30: Gross margin is now expected to be flat versus the previous expectation of "flat to down slightly" versus 45.1% in 2017. Adjusted gross margin is expected to improve 20 to 30 basis points compared to 45.2% in 2017 as benefits from product costs and lower planned promotional activity are offset primarily by inventory management actions. Excluding the impact of the restructuring efforts, adjusted diluted earnings per share is now expected to be 21c-22c versus the previous expectation of 19c-22c. Year-end inventory for 2018 is now expected to be down at a mid-single-digit rate versus the previous expectation of flat to down slightly.